U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20271 / September 6, 2007
SEC v. Homeland Communications Corporation, et al., Case No. 07-80802-Marra/Johnson (S.D. Fla., filed September 5, 2007)
SEC Brings Emergency Action to Halt an Ongoing Fraud Involving Homeland Communications Corporation
The Securities and Exchange Commission ("SEC") announced that on September 5, 2007, it filed an emergency federal civil action to halt an ongoing offering fraud involving the unregistered sales of securities being perpetrated by Homeland Communications Corporation ("Homeland"), a purported wireless communications company based in Deerfield Beach, Florida, its principal officer, Frances LaBarre ("LaBarre"), and its vice-president of investor relations, Joseph Yurkin ("Yurkin"). The action also names several South Florida companies as relief defendants, including Oak Tree Escrow Corp., Luna Pazza, Inc., SMR Acquisitions, Inc., SMRDevelopment.com, Inc., and Global Survey Corp. (collectively "the Relief Defendants").
Acting on the SEC's request for emergency relief, on September 6, 2007, Judge Kenneth A. Marra of the United States District Court for the Southern District of Florida, issued temporary restraining orders, asset freezes and other relief against the Defendants and the Relief Defendants. The Court also appointed David Mandel, Esq. as Receiver over the corporate Defendant and Relief Defendants.
The SEC's complaint alleges that from at least May 2005 to the present, Homeland, LaBarre, and Yurkin have raised at least $1.13 million from 93 investors nationwide by offering and selling unregistered securities in the form of units consisting of one share of Homeland's common stock and one warrant. The complaint further alleges that, in connection with the offer and sale of Homeland's securities, the Defendants are making numerous material misrepresentations and omissions to investors through Homeland's website, its telemarketers, and its offering materials distributed to potential investors. The misstatements and omissions include, among other things, false representations concerning an upcoming initial public offering, the use of investor proceeds, and Homeland's assets and acquisitions. The complaint also alleges that the Defendants have fraudulently diverted a substantial portion of investor funds to entities controlled by LaBarre and her family.
The SEC's complaint alleges that Defendants violated Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. In addition to the emergency relief described above, the SEC's complaint seeks, among other things, preliminary and permanent injunctions prohibiting future violations of the securities laws, an order that the Defendants disgorge all ill-gotten gains, an order imposing civil money penalties, and penny stock bars against LaBarre and Yurkin.
The SEC acknowledges the assistance of the Texas State Securities Board and the State of Florida Office of Financial Regulation, Bureau of Financial Investigations.
